After the U.S. midterm elections, anti-data center forces are on the rise, putting pressure on Asian AI chip stocks

According to Wall Street News, the Democratic Party achieved a significant victory in the U.S. midterm elections, with several candidates who clearly opposed the expansion of data centers elected as governors, raising concerns in the market about a slowdown in AI infrastructure investment in the U.S. Asian chip stocks were under pressure on Wednesday, with companies like Samsung Electronics and SK Hynix facing risks that demand for server DRAM and high bandwidth memory (HBM) could be affected.

The opposition to data centers mainly focuses on issues such as noise, water consumption, energy consumption, and increased electricity bills for residents. The market is concerned that local governments may tighten project approvals under the pretext of power supply, environmental protection, and AI safety, leading to delays in the construction of new data centers. However, analysts believe that regulation may not directly lead to a shrinkage in investment scale, and tech companies may also turn to building their own power and supporting infrastructure.

For South Korean companies, the election results have varying impacts. The Democratic Party's control of Congress may counterbalance the Trump administration's efforts to cut subsidies from the CHIPS and Science Act, benefiting companies like Samsung that invest in the U.S.; the clean energy tax credit policy is also expected to be restored, potentially benefiting solar companies like Hanwha Solutions. Meanwhile, significant easing of automotive tariffs is unlikely, while the Korea-U.S. shipbuilding cooperation framework is expected to continue.